Estate agents in Britain recorded their bleakest sentiment in over two years last month, as rising mortgage rates sapped buyer interest. RICS said its house‑price gauge slipped to minus 34 in April, down from minus 25 in March, the lowest reading since November 2023. New buyer enquiries and agreed‑sale indicators also fell sharply, signalling a market under pressure overall.

The surge follows the February onset of the US‑led war on Iran, which pushed quoted two‑year fixed rates higher. Bank of England data show the 60 % loan‑to‑value benchmark rose to 5% in April from 3.8 % in February, while the 90 % LTV climbed to 5.5 % from 4.3 %. Although rates have steadied, they remain well below last year’s peaks.

Agents say only highly motivated buyers are proceeding, while most sit on the sidelines awaiting clarity on inflation and future rate moves. Comments from John Goodwin’s Colin Townsend and Knight Frank’s Tom Bill echo a nervous market, with pre‑conflict mortgage offers likely to be exercised before they expire. The RICS outlook for the next three months stayed negative at minus 38, suggesting further price pressure.